Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has roots dating back to the 19th century, but its modern legacy took shape when Warren Buffett took power in 1965. Under Buffett’s leadership, the struggling textile company transformed into a conglomerate spanning sectors such as insurance, energy and consumer goods.
Let’s take a closer look at how many shares of Berkshire Hathaway investors would own today if they had held their shares since they began trading on the New York Stock Exchange.
For decades, Berkshire Hathaway shares were only available through over-the-counter markets. But on November 29, 1988, it listed what is now known as its Class A shares on the New York Stock Exchange. In his shareholder letter that year, Buffett said his main motivation was to minimize investors’ transaction costs.
In 1996, the company launched its Class B shares, affectionately dubbed “Baby Bs” by Buffett. The new class was introduced to prevent fund managers from creating mutual fund-style structures that would divide Berkshire’s shares into smaller, more accessible chunks.
In 2010, Berkshire Hathaway acquired railroad giant Burlington Northern Santa Fe (BNSF) in a combination of cash and Berkshire stock, prompting Buffett to initiate a 50-to-1 stock split. As a result, investors who bought a single Class B share in 1996 would now own 50 shares.
|
|
Berkshire Class A Shares |
Berkshire Class B Shares |
|---|---|---|
|
Affiliated with the New York Stock Exchange |
1988 |
1996 |
|
Stock split |
Never |
50-to-1 in 2010 |
|
Number of shares today |
1 |
50 |
|
Voting rights |
1 vote per share |
1/10,000 vote per share |
|
Recent price |
$670,738 |
$447 |
Data source: Berkshire Hathaway. Chart by author.
Berkshire Hathaway’s Class A shares have never been split, and it’s unlikely they ever will. Buffett has often said that the high price is intended to favor investors over traders. He once said, “We want to attract shareholders who are as investment-oriented as possible, with an equally long-term horizon.”
Berkshire’s Class A shares continue to demonstrate the benefits of Buffett’s investment mentality, with Class A shares trading at nearly $700,000 per share.
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